This is the first increase in four years after strong sales of export contracts to chocolate makers and cocoa houses.

According to Reuters, sources say that the farmgate price will rise from GH¢7,600 per tonne to GH¢8,000 (US$1,523.81) per tonne for the season starting in October.

A source from Cocoa Marketing Company (CMC) said “the price will be around GH¢8,000 per tonne next season. That’ll be GH¢500 per bag, and it’s something that cocoa farmers deserve.”

Meanwhile, Ivory Coast, the biggest cocoa producer, will also raise its farmgate price.

The cocoa prices for Ghanaian farmers are set by the country’s Producer Price Review Committee. The committee meets yearly in September to decide a price which is officially announced in early October before the cocoa season starts.

“Inflation and interest rates are now low in Ghana at the moment, and aside from the election (in December 2020), another possible reason for a hike would be the positive gains cocoa made this year,” another source at Cocobod said.

Ghana produced 794,000 tonnes of cocoa this season, down 11.7% from the last season.

In June 2019, Ghana and Ivory Coast jointly agreed on a floor price for cocoa of US$2,600 per tonne and a living income differential (LID) of US$400 per tonne. They have also been in talks for two years about simultaneously announcing their farmgate prices.

The two countries are also working together to set prices close enough to avoid cocoa smuggling on their border.